Green hydrogen: PLI scheme for electrolyser manufacturing on the cards, says Union power minister RK Singh

The acquisition obligation might be later elevated to 20-25%. (Consultant picture)

To expedite the uptake of inexperienced hydrogen, the federal government will provide you with a manufacturing linked incentive (PLI) scheme for buyers in electrolyser manufacturing, Union energy minister RK Singh mentioned on Wednesday. Electrolysers are used to supply inexperienced hydrogen utilizing electrical energy generated from renewable sources similar to photo voltaic and wind vegetation.

Whereas delivering the keynote tackle at a webinar on inexperienced hydrogen organised by the Council on Vitality, Atmosphere and Water (CEEW), Singh mentioned that as a lot as 8,800 mega-watt (MW) of electrolyser capability is required to fulfill the demand of the obligated industries, if they’re mandated to supply even 10% of their necessities by home inexperienced hydrogen. The acquisition obligation might be later elevated to 20-25%.

As FE reported earlier, the federal government intends to place inexperienced hydrogen consumption obligations on fertiliser producers and petroleum refiners to create a hydrogen value-chain within the nation and convey down the prices of hydrogen manufacturing. Although there are enough capacities of put in and upcoming renewable power era sources within the nation, the scarcity of electrolysers can turn into a roadblock for assembly the estimated requirement on inexperienced hydrogen. The PLI scheme can start with manufacturing capability of round 10,000 MW. Based on consultants, such electrolyser manufacturing capability might require investments between Rs 15,000-20,000 crore. “We’re additionally proposing to provide you with viability hole funding (VGF) for inexperienced hydrogen in heavy mobility,” Singh mentioned, including that the metal sector may be roped in to make use of home inexperienced hydrogen.

Prime Minister Narendra Modi, on August 15, had introduced the Nationwide Hydrogen Mission as the federal government explores methods to scale back dependence on imported merchandise similar to crude oil and pure gasoline. Although the present electrolyser capability globally is round 2,000 MW, given the potential of inexperienced hydrogen turning into the emissions-free future gas, many nations have charted out plans to arrange giant electrolyser capacities. The European Union plans to put in 6,000 MW of electrolyser capability by 2024 and 40,000 MW by 2030, by when it hopes to supply 10 million tonne of inexperienced hydrogen. The price of electrolysers has the very best share within the whole manufacturing value of inexperienced hydrogen, which at the moment wants a sizeable sum of $3.6-5.8/kg to fabricate.

Reliance Industries chairman Mukesh Ambani just lately mentioned that the corporate “will aggressively pursue” the goal of bringing down the price of inexperienced hydrogen to beneath $2 per kg “properly earlier than the flip of this decade”, and “India can set an much more aggressive goal of attaining beneath $1 per kg inside a decade”. An electrolyser manufacturing plant might be part of the Rs 60,000-crore Dhirubhai Ambani Inexperienced Vitality Giga Advanced which RIL is at the moment creating in Jamnagar.

State-run Indian Oil just lately mentioned it can construct the nation’s first inexperienced hydrogen plant at its Mathura refinery, utilizing electrical energy from its wind energy challenge in Rajasthan. NTPC additionally plans to supply inexperienced hydrogen on a industrial scale from a part of the electrical energy generated by the photo voltaic panels to be put in in its upcoming 4,750 megawatt renewable power park at Rann of Kutch.

At present, the ability generator is operating a pilot challenge in its Vindhyanchal unit, the place the price of hydrogen is estimated to be round $2.8-3/kg. JSW Energy mentioned in July its subsidiary JSW Future Vitality has entered right into a framework settlement with Australian Fortescue Future Industries to collaborate on inexperienced hydrogen manufacturing. US-headquartered renewable power start-up Ohmium Worldwide has additionally just lately launched a inexperienced hydrogen electrolyser gigafactory in Bengaluru.